Nikkei eases as investors await Greek vote, Fed

By Sophie Knight TOKYO, June 14 (Reuters) - Japan's Nikkei share averagesagged on Thursday after U.S. retail data disappointed andinvestors stayed cautious ahead of a weekend Greek election thatcould alter the fate of the euro zone, as well as a FederalReserve meeting next week. The Nikkei dipped 0.6 percent to 8,536.37 after a Spanishbank bailout deal failed to dispel concern about a euro zonedebt crisis that could escalate if anti-bailout parties win amajority in Greece this weekend, potentially setting the countryon the rocky path to a euro zone exit. "The Nikkei is obviously moving up and down but it lacks theconviction for either a rally or a sell-off," said MakotoKikuchi, CEO of Myojo Asset Management Japan. "It would bebetter if everyone was just waiting for the Greek election butinvestors are also hanging on for the FOMC before they make amove." Renesas Electronics Corp soared 17.8 percent to 324yen after the Mainichi newspaper said the money-losing chipmakerwould receive a total 50 billion yen ($630 million) in loansfrom banks, after its main shareholders balked at a request toinject fresh capital. The banking sector outperformed, putting on 0.7percent to track gains in its U.S. counterparts after JPMorganChase & Co rose following Chief Executive Jamie Dimon'stestimony about a multibillion-dollar trading loss. Nomura Holdings gained 2.3 percent, while SumitomoMitsui Financial Group Inc rose 1.6 percent. Consumer electronics companies, which had taken a beatingover the last month on poor earnings, also bucked the marketfall. Sharp Corp, Sony Corp and Panasonic Corp rose between 1.2 and 1.6 percent. However, risk sentiment was chilled after U.S. retail salesfell to a two-year low in May, the latest indicator of astuttering recovery in the world's biggest economy. "It's because of statistics like these that so muchattention is focused on the FOMC meeting, to see if they willease to boost the economy," said Kikuchi of Myojo AssetManagement. On Wednesday, gains in large caps with low overseas exposuredrove the Nikkei higher than the broader Topix. ButThursday saw heavily weighted Fast Retailing Co Ltdfall in line with the Nikkei, dropping 0.8 percent, whileindustrial robot-maker Fanuc Ltd lost 1.2 percent. "On a technical level, the Nikkei and the Topix are caughtbetween an upside around the 25-day moving average and adownside of the five-day moving average," said Hiroichi Nishi,equity general manager at SMBC Nikko Securities. The Nikkei's25-day moving average is around 8,625, while its five-day movingaverage stands around 8,549. The Topix index lost 0.5 percent to 722.61 in thin volume, atheme for the week as liquidity has also ebbed and midterminvestors stepped out of the game to await next week's pivotalevents. Also on the agenda is a Bank of Japan policy meeting thatconcludes on Friday, but many expect the bank will hold fire onfurther easing to await a Fed decision on further easing. Foreign investors sold a net 158 billion yen ($2 billion) ofJapanese stocks last week, the eighth straight week of netselling, Ministry of Finance data showed on Thursday. Amiduncertainty about a global slowdown, foreign investors emergedas net buyers of safe-haven bonds instead.